BayRaider Posted October 20, 2017 Share Posted October 20, 2017 On 10/14/2017 at 4:45 PM, incognito_man said: My employer has a very generous plan. I think it used to be 150% on 10% but they decreased it to 8% shortly before I started. I'm a fan Wow that's fantastic.. my employer only does 50% up to 6%. Quote Link to comment Share on other sites More sharing options...
incognito_man Posted October 20, 2017 Share Posted October 20, 2017 1 hour ago, LETSGOBROWNIES said: Lol right?!? I get 100% up to 4%. Our real benefit is the stock option plan, 15% off the lowest price at the beginning or end of the 6 month purchase period (whichever is lower). They also throw in 500/1000 into your HSA (single/family). We get the same for HSA as well. Quote Link to comment Share on other sites More sharing options...
Mox Posted October 20, 2017 Share Posted October 20, 2017 On 10/14/2017 at 6:45 PM, incognito_man said: My employer has a very generous plan. I think it used to be 150% on 10% but they decreased it to 8% shortly before I started. I'm a fan That's the greatest thing I've ever heard. My lord. Quote Link to comment Share on other sites More sharing options...
incognito_man Posted October 20, 2017 Share Posted October 20, 2017 4 minutes ago, Bullet Club said: That's the greatest thing I've ever heard. My lord. 5 year (20% per year) employer contribution vested period, however. Quote Link to comment Share on other sites More sharing options...
ramssuperbowl99 Posted October 20, 2017 Share Posted October 20, 2017 (edited) 2 hours ago, incognito_man said: We get the same for HSA as well. When you say you get the same, are you talking just the flat $500/$1k or also a % of salary like your 401k? If it's the latter...damn that's sexy. Edited October 20, 2017 by ramssuperbowl99 Quote Link to comment Share on other sites More sharing options...
incognito_man Posted October 20, 2017 Share Posted October 20, 2017 15 minutes ago, ramssuperbowl99 said: When you say you get the same, are you talking just the flat $500/$1k or also a % of salary like your 401k? If it's the latter...damn that's sexy. The former. Same flat rate that I quoted. I wish on the latter...ha Quote Link to comment Share on other sites More sharing options...
y*so*blu Posted October 23, 2017 Share Posted October 23, 2017 I'm broke and have been for quite a while. The only investment I can afford to make is a lottery ticket. Quote Link to comment Share on other sites More sharing options...
ramssuperbowl99 Posted October 27, 2017 Share Posted October 27, 2017 Praise Papa Bezos for our wonderful gains today. Quote Link to comment Share on other sites More sharing options...
cddolphin Posted October 27, 2017 Share Posted October 27, 2017 On 10/22/2017 at 8:08 PM, y*so*blu said: I'm broke and have been for quite a while. The only investment I can afford to make is a lottery ticket. That's a patrician investment method tbh, I've been buying powerball tickets weekly and putting them in a piggy bank, by the time I'm 65 (my goal retirement age) I'll have about 2,228 tickets. One of them will surely be a big winner. Quote Link to comment Share on other sites More sharing options...
ET80 Posted October 27, 2017 Share Posted October 27, 2017 13 minutes ago, cddolphin said: That's a patrician investment method tbh, I've been buying powerball tickets weekly and putting them in a piggy bank, by the time I'm 65 (my goal retirement age) I'll have about 2,228 tickets. One of them will surely be a big winner. ...math checks out on this. Quote Link to comment Share on other sites More sharing options...
Viewsfromthe206 Posted October 28, 2017 Share Posted October 28, 2017 Don't really care if I got in on Square late, it's going to make me a great return. Quote Link to comment Share on other sites More sharing options...
MWil23 Posted November 6, 2017 Share Posted November 6, 2017 Posted this somewhere else, sorry: My wife and I are considering opening up a Roth IRA here soon. Any advice? We are both teachers and have our own retirement, but figured instead of just putting money into a traditional savings account, maybe we should have a backup retirement/next egg for when we retire in the next 29-34 years. We would essentially still have our own retirement/state teacher's retirement plan but would also have this. Worth it? Good move? No? Quote Link to comment Share on other sites More sharing options...
LETSGOBROWNIES Posted November 6, 2017 Share Posted November 6, 2017 35 minutes ago, MWil23 said: Posted this somewhere else, sorry: My wife and I are considering opening up a Roth IRA here soon. Any advice? We are both teachers and have our own retirement, but figured instead of just putting money into a traditional savings account, maybe we should have a backup retirement/next egg for when we retire in the next 29-34 years. We would essentially still have our own retirement/state teacher's retirement plan but would also have this. Worth it? Good move? No? Can't hurt. Never heard of someone saving too much for retirement. Quote Link to comment Share on other sites More sharing options...
ramssuperbowl99 Posted November 6, 2017 Share Posted November 6, 2017 44 minutes ago, MWil23 said: Posted this somewhere else, sorry: My wife and I are considering opening up a Roth IRA here soon. Any advice? We are both teachers and have our own retirement, but figured instead of just putting money into a traditional savings account, maybe we should have a backup retirement/next egg for when we retire in the next 29-34 years. We would essentially still have our own retirement/state teacher's retirement plan but would also have this. Worth it? Good move? No? Disclaimer: I am not a teacher or government employee. I also am probably a moron. ¯\_(ツ)_/¯ Tax advantaged retirement accounts are the absolute best. Without getting political, you don't control the money in your pension and you're banking on that system continuing to work in more or less its current form for 29-34 years. With a 401(k), it's my money the second the check hits the account whether I'm working for Google or Enron. Also, depending on your state, you might not be eligible for social security, which is another safety blanket gone. I'd evaluate a traditional versus roth IRA ($11k/year max for both of you in either) and an HSA ($6,800 max for both of you) if you have a HDHP (>$1500 deductible and some other weird stuff I can't remember). Do the one that maxes out your tax savings. So for the IRA comparison, check your income tax rate now versus what it would be in retirement with your pension. If it's similar, go roth since you're already heavy into tax-deferred investments with your pension. For the HSA, just note that you could lose it with a medical bankruptcy type situation whereas that couldn't happen with an IRA, but if you're smart that's usually the most tax efficient option. They're all great options though, if you got a $20k raise tomorrow, I'd say max them both out. So when you know what type of account you have, then get your allocation going. Since pensions are more conservative, you'll want to have a really high percentage in equities. Using a 3-fund portfolio is a solid strategy. Here's my allocation and @incognito_man's allocation side by side. 75% me/50% incog Vanguard Total Stock Market Index Fund (VTSMX) 20% me/50% incog Vanguard Total International Stock Index Fund (VGTSX) 5% me/0% incog Vanguard Total Bond Market Fund (VBMFX) I'd recommend Vanguard because the fees are super low. If you call, they'll help you get started on all of the paperwork to get the account started. Quote Link to comment Share on other sites More sharing options...
MWil23 Posted November 6, 2017 Share Posted November 6, 2017 1 minute ago, ramssuperbowl99 said: Disclaimer: I am not a teacher or government employee. I also am probably a moron. ¯\_(ツ)_/¯ Tax advantaged retirement accounts are the absolute best. Without getting political, you don't control the money in your pension and you're banking on that system continuing to work in more or less its current form for 29-34 years. With a 401(k), it's my money the second the check hits the account whether I'm working for Google or Enron. Also, depending on your state, you might not be eligible for social security, which is another safety blanket gone. I'd evaluate a traditional versus roth IRA ($11k/year max for both of you in either) and an HSA ($6,800 max for both of you) if you have a HDHP (>$1500 deductible and some other weird stuff I can't remember). Do the one that maxes out your tax savings. So for the IRA comparison, check your income tax rate now versus what it would be in retirement with your pension. If it's similar, go roth since you're already heavy into tax-deferred investments with your pension. For the HSA, just note that you could lose it with a medical bankruptcy type situation whereas that couldn't happen with an IRA, but if you're smart that's usually the most tax efficient option. They're all great options though, if you got a $20k raise tomorrow, I'd say max them both out. So when you know what type of account you have, then get your allocation going. Since pensions are more conservative, you'll want to have a really high percentage in equities. Using a 3-fund portfolio is a solid strategy. Here's my allocation and @incognito_man's allocation side by side. 75% me/50% incog Vanguard Total Stock Market Index Fund (VTSMX) 20% me/50% incog Vanguard Total International Stock Index Fund (VGTSX) 5% me/0% incog Vanguard Total Bond Market Fund (VBMFX) I'd recommend Vanguard because the fees are super low. If you call, they'll help you get started on all of the paperwork to get the account started. Thanks, very helpful. I'll explain my STRS (State Teacher's Retirement System) the best that I can: 1. Since I do this, I DO NOT do/am not eligible for Social Security. Like you said, safety blanket gone. This is why I'd like a secondary retirement account that's privatized/not public. Without getting too political, whether conservative or liberal, I just don't trust the government with my money. I have trillions of reasons why. 2. I realize that I should have done this YEARS ago (I'm currently 31), but the reality is, we had student loans (which we aggressively paid off...zero regrets there), saved up for a house (refinanced to a 15 year mortgage...easily one of the smartest things I've ever done), got 2 new vehicles (out of necessity), 1 which we paid off, the other we have a small monthly payment for the next 5 years, and zero debt besides this and our house. 3. Since we are now bringing in money into our savings account, I figured I should put that to work in a LOW RISK investment/Roth IRA. 4. I can retire when I'm 60, but that's only 29 years of having money in this ROTH. If I end up letting it sit there another 3-5 years, the money will literally double (assuming the 7% projections hold...it was 6.6% recently). Not sure if this changes anything for you or not. Thanks for the help/advice. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.